Economics Explored

Japan’s Corporate Comeback: Inside the Resolute Japan Model, w/ Wharton Prof. Michael Useem - EP260

Episode Summary

Wharton Professor Michael Useem joins host Gene Tunny to discuss his new book, Resolute Japan, which unveils Japan’s emerging shift in management practices fueling a corporate revival. Japanese companies are adopting ambidextrous management, empowering frontline employees, and embracing Western practices while retaining stakeholder-first traditions. He emphasizes the importance of top management in driving change and the potential for Japan to regain global economic prominence by learning from domestic and international best practices.

Episode Notes

Wharton Professor Michael Useem joins host Gene Tunny to discuss his new book, Resolute Japan, which unveils Japan’s emerging shift in management practices fueling a corporate revival. Japanese companies are adopting ambidextrous management, empowering frontline employees, and embracing Western practices while retaining stakeholder-first traditions. He emphasizes the importance of top management in driving change and the potential for Japan to regain global economic prominence by learning from domestic and international best practices.

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Timestamps for EP260

• Introduction and Overview of the Podcast (0:00)
• Japan's Economic Downturn and Resurgence (3:30)
• Methodology and Interview Process (5:44)
• Innovative Management Practices in Japan (11:29)
• Ambidextrous Management and Global Influence (21:51)
• Challenges and Opportunities for Japan (42:36)
• Economic Research on Management Impact (42:58)
• Final Thoughts and Recommendations (52:47)

Takeaways

1. Japanese companies are adopting innovative management practices, such as empowering frontline employees and embracing the "gemba walk" to better understand operations.
2. Japanese companies are retaining their commitment to stakeholders, including employees, the community, and the country, while also becoming more open to adopting Western-style management principles.
3. The concept of "ambidextrous management" is emerging, where companies are exploring new industries while exiting declining ones, demonstrating a willingness to adapt to changing market conditions.
4. There is an increasing openness among Japanese companies to learn from and adopt best practices from other countries, which is helping drive their resurgence.
5. The impact of top management changes can significantly influence a company's performance, suggesting the importance of resolute leadership in driving change and improvement.

Links relevant to the conversation

Professor Michael Useem’s profile:

https://mgmt.wharton.upenn.edu/profile/useem/

Resolute Japan book:

https://www.amazon.com.au/Resolute-Japan-Leaders-Corporate-Resurgence/dp/1613631820

OECD Economic Surveys - Japan 2024:

https://www.oecd-ilibrary.org/economics/oecd-economic-surveys-japan-2024_41e807f9-en

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Thanks to Obsidian Productions for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. 

Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.